Cram Down Rental Property- Is there anyone doing this?

[jr001]

Can anyone discuss their experiences wtih a cram down on a rental property. We will be filing BK, and am looking at doing a Ch 13. I know a Ch. 11 is a possibilty if we wanted to spread the payments out longer than 5 years. (and be in in longer!) Ch. 11 may have other advantages, not sure if not having a Trustee and being the "Debtor in Possession" would really outweigh benefits enough in our case, or would be a true benefit over Ch. 13. However, a study to compare. It is a life choice to have to live with for most likely at least 5 years.

Any conversation about rental cram downs welcome. We are in Nevada, but whatever info from any experience would make a good topic.

[HHM]

Just FYI, strictly speaking, although there is no "panel trustee" and the debtor, in essence, acts as their own trustee...the US Trustee is VERY MUCH involved in chapter 11's. So, although it is technically accurate to say that the debtor is the chapter 11 trustee, the real trustee in a chapter 11 is the US Trustee.

I think you have received all the advice you are going to get on this issue at this forum since you have asked this question a couple places here.

[jr001]

Cram Down Rental Property- Is there anyone doing this?

I have not asked this question to receive an answer. I haven't seen much about anyone else currently or previously having done a cram down on a rental property In a ch 13 or 11.

I am seeking to hear others stories on this subject. Just as many of you here share and learn about your BK journey, before filing questions, during and after.

Am I the only one on this forum looikng into doing a cram down on a rental? If so, any advice where I could find others talking about their experiences with this subject.

Thank you.

[justbroke]

I was in a Chapter 13 and had rental property. At first, I was using the Chapter 13 to save two properties, but later decided to convert to Chapter 7 and let one property go. In the end, cramming down could be useful, but where do you find the money to actually afford to do this? Unless the property was really cheap and you had no other unsecured debt, I don't see how you pay off the crammed down property over the life of the Chapter 13/11.

No Trustee is going to allow you to divert money from the unsecured creditor pool to a crammed down property. Remember, in a Chapter 13/11, your payments to secured creditors holding claims on real property would be limited to the contractual amount due over that period. So, while possible, I don't think there are many cases where this happens.

[despritfreya]

I do not have "personal" experience in this subject however I have tons of "professional" experience. As I have said before, doing a cram down, either in a 13 or an 11 is not a big deal so long as you have positive cash flow from the property. If you can afford to pay the cram down with appropriate interest, over the life of the 13 Plan (and you otherwise qualify) you are better off since there is no 1111(b) election. If not, you do the 11. I think this is the basic answer anyone who has gone for the cram down of rental property will give.

Des.